International News 06/08
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Social media giant Meta posts impressive revenue in Q2-2024
In the second quarter of 2024, Meta Platforms, Inc., trading as Facebook, reported robust financial results with revenues of $39 billion, exceeding expectations and demonstrating a 22% growth compared to the same period last year. However, in addition to monitoring its revenue figures, Meta is also tracking its substantial investment in artificial intelligence (AI). Mark Zuckerberg, the company's CEO, has announced plans to increase infrastructure spending in order to support AI research and product development. Despite this increased expenditure, investors have reacted favourably, indicating confidence in the company's long-term strategy. The robust revenue growth is indicative of not only Meta's operational resilience but also the market's favourable response to its AI-centric investment strategy.
Japan's mortgage rates to rise for the first time in 17 years
The Bank of Japan has announced a second increase in its benchmark interest rate in 17 years, which will result in higher mortgage interest rates in Japan. The Bank of Japan has recently increased its benchmark interest rate from 0% to 0.25%. Mitsubishi UFJ Financial Group, Japan's largest bank, has also announced that it will raise its short-term benchmark interest rate by 0.15% to 1.625% on 2 September, marking the first increase in 17 years. It is anticipated that other banks will follow this example. The increase in mortgage costs could have a negative impact on consumer confidence and the housing market, which is already experiencing weakness. The increase in interest rates coincides with a period of rising prices for new condominiums in Tokyo, driven by a weakening yen, limited supply, and a shortage of construction workers. While property companies saw a decline in share value, the increase in interest rates was viewed as a positive development for banks due to the weakening yen.
https://internasional.kontan.co.id/news/bunga-kpr-di-jepang-akan-naik-pertama-kalinya-dalam-17-tahun
US weekly jobless claims rise to highest level in 11 months
The number of Americans filing for unemployment benefits has reached its highest level in 11 months, indicating a potential weakening of the labour market. The latest data from the Labour Department shows that initial claims for state unemployment benefits increased by 14,000 to 249,000 for the week ending 27 July. This figure exceeds the predictions of economists, who had anticipated 236,000 claims for the week. The increase in claims can be attributed to a number of factors, including the temporary closure of motor vehicle plants for repairs and the impact of Hurricane Beryl in Texas. However, the rate of layoffs remains low, as indicated by government data which showed that the rate of layoffs in June was the lowest in over two years. The slowdown in the labour market can be attributed to the low hiring of workers, influenced by the Federal Reserve's interest rate hikes. Additionally, a report from Challenger, Gray & Christmas revealed that planned layoffs by US-based companies fell by 47%.